Canton Network (CC) posted a sharp short-term rally over the past 24 hours, but cracks beneath the surface leave questions about how long the move can last. Price action and leverage - CC climbed nearly 13% in the last day as market liquidity swelled. - Data from CoinGlass points to perpetual futures as the main driver: Open Interest jumped to $21.1 million after an additional $3.12 million flowed into leveraged positions, signaling a surge in margin-driven bets. Warning signs in market structure - The rally appears increasingly leverage-driven, a condition that can amplify reversals. The Open Interest–Weighted Funding Rate has slipped deeply into negative territory, indicating growing preference for short exposure among liquidity providers. - Compounding concerns, overall trading volume has fallen even as price rose — a classic divergence suggesting weak organic demand behind the move. Technical picture - On the chart, CC cleared resistance tied to a descending channel — a bullish breakout that targets the channel’s upper boundary (around $0.15). - That said, holding above the former resistance is crucial. If CC fails to sustain the breakout, the leverage-heavy backdrop could accelerate a pullback. Momentum indicators mixed - Moving Average Ribbon analysis (SMA 20, 50, 100, 200) shows potential weakness: the SMA 100 sits above the SMA 20 and SMA 50, while the SMA 200 also remains above the SMA 20. When longer-term SMAs dominate shorter-term ones, it often signals waning bullish momentum. Traders will watch for the SMA 20 to cross above the SMA 50 or to flip the SMA 200 as signs of renewed strength. - The Relative Strength Index (RSI) reads about 53 — still inside the bullish 50–70 band but trending lower, leaving room for a rebound only if it holds above neutral. Bottom line Canton’s rally has clear technical upside after breaching the descending channel, but the move is heavily supported by leveraged perpetual activity rather than broad spot-market demand. With falling volume, negative OI-weighted funding and longer-term SMAs overpowering short-term averages, the setup carries elevated downside risk unless momentum indicators quickly turn decisively bullish. Disclaimer: This article is for informational purposes only and is not investment advice. Cryptocurrency trading carries significant risk; do your own research before making decisions. Sources: CoinGlass, TradingView. Read more AI-generated news on: undefined/news